Liechtenstein Concludes Multiple TIEAs

22.12.2010

Liechtenstein’s government has recently approved tax agreements in accordance with the Organization for Economic Cooperation and Development’s (OECD) model convention with the Nordic States: Norway, Sweden, Finland, Denmark, Iceland, the Faroe Islands, and Greenland.

According to the principality’s administration, the tax information exchange agreements (TIEAs) have been concluded in accordance with the Liechtenstein declaration of March 2009 and with the government’s agreement strategy.

In a joint declaration with the European Economic Area (EEA) member states of Sweden, Finland, Denmark, Norway and Iceland, the validity and application of the principle of non-discrimination are confirmed and expressly incorporated. In compliance with European law, Liechtenstein persons and companies may now no longer be discriminated against.

Before the signing, Liechtenstein’s Prime Minister Klaus Tschütscher stated that: “It is important for us that the Liechtenstein financial centre does not experience unjustified competitive disadvantages compared with other financial centres, and that tax-based discrimination be ruled out in future. In this way, we are creating forward-looking framework conditions for our financial centre, as well as legal certainty for our clients and for our agreement partners.”

The agreements with the seven Nordic partners meet the internationally applicable standards in accordance with the OECD model tax convention. Both sides of the agreement emphasize a willingness to expand and deepen tax cooperation beyond the TIEA. This also includes a willingness to enter into talks concerning the conclusion of a double taxation agreement.

Liechtenstein has now concluded 23 OECD-compliant tax agreements. It is the declared goal of the principality’s government to expand its network especially of double taxation agreements both in Europe and worldwide, and to further implement the OECD standard on transparency and information exchange.

Commenting on the agreements, Prime Minister Tschütscher announced that: “These tax agreements confirm the path we have been pursuing. They give Liechtenstein the necessary basis for future information exchange".